Net income attributable to Masonite increased to $15 million from a
loss of $13 million.

Adjusted EBITDA increased to $61 million from $57 million.

“2016 was a strong year for Masonite. With our sixth consecutive year of
positive growth of average unit price, we delivered a 12.8% adjusted
EBITDA margin which is close to what we achieved following the last
housing peak despite U.S. housing starts still running at approximately
sixty percent of that level,” said Fred Lynch, president and CEO. “All
three of our business segments delivered adjusted EBITDA margin
improvements in 2016 as we continued to strategically invest in growth
initiatives and returned capital to shareholders in the form of our
share repurchase program.”

Fourth Quarter 2016 Discussion

Net sales decreased 1% to $481 million in the fourth quarter of 2016,
from $485 million in the comparable period of 2015. The decrease was
primarily from 3% of negative foreign exchange, a 2% decline as a result
of the deconsolidation of MAL in December 2015 and a 4% headwind as a
result of the 53rd week in 2015. These decreases were partially offset
by a 3% increase in total company sales volume and a 2% improvement in
average unit price. Adjusting for foreign exchange, the deconsolidation
of MAL, and the 53rd week in 2015, net sales would have increased 8%.

North American Residential net sales were $337 million, an 8% increase
over the fourth quarter of 2015, driven primarily by a 9% increase in
sales volume. Average unit price was essentially flat as we
experienced faster growth in the interior door category, which carries
lower average selling prices.

Europe net sales were $68 million, a 16% decrease over the fourth
quarter of 2015, due to 17% of negative foreign exchange. Average unit
price increased 3% but was largely offset by a decline in sales volume
and components sales.

Architectural net sales were $70 million, a 6% decrease over the
fourth quarter of 2015, driven by a 13% decline in sales volume which
was partially offset by a 7% increase in average unit price. The sales
volume decline was primarily the result of strong demand in our stock
door business in the fourth quarter of 2015. The increase in average
unit price was primarily the result of strength in higher end
customized doors, which carry higher average unit prices than stock
doors.

Total company gross profit increased 2% to $97 million in the fourth
quarter of 2016, from $95 million in the fourth quarter of 2015. Gross
profit margin increased 50 basis points to 20.1%, primarily due to the
favorable impact of volume leverage on our fixed costs, higher average
unit prices and lower commodities costs.

Selling, general and administrative expenses (SG&A) decreased 6% to $64
million in the fourth quarter of 2016 and SG&A as a percentage of net
sales was 13.2%, a 70 basis point improvement versus the fourth quarter
of 2015. The decrease in SG&A was largely due to a $2.1 million benefit
as a result of currency declines. In addition, depreciation and
amortization costs and personnel costs were both approximately $1.0
million lower when compared to the fourth quarter of 2015.

Net income attributable to Masonite increased $29 million to $15 million
in the fourth quarter of 2016, from $(13) million in the comparable 2015
period. Adjusted EBITDA increased $4 million to $61 million for the
fourth quarter of 2016, from $57 million in the comparable 2015 period.
Excluding $7 million of non-recurring items in the fourth quarter of
2015, including a utilities refund, a sales tax accrual reversal and the
53rd week, Adjusted EBITDA would have increased approximately $11
million.

Diluted earnings per share were $0.49 in the fourth quarter of 2016
compared to $(0.43) in the comparable 2015 period. Diluted adjusted
earnings per share* were $0.55 in the fourth quarter of 2016 compared to
$0.54 in the comparable 2015 period.

Masonite repurchased 296,426 of its common shares in the fourth quarter,
at an average price of $64.17, or approximately $19 million.

Full Year 2016 Discussion

Net sales increased 5% to $1,974 million in the year ended January 1,
2017, from $1,872 million in the comparable period of 2015. The increase
was primarily due to a 5% increase in sales volumes and a 3% improvement
in average unit prices, partially offset by 3% of negative foreign
exchange. In addition to the foreign exchange impact, net sales in the
prior year period included $49 million from MAL. Adjusting for those
sales in the prior year period and foreign exchange headwinds, net sales
would have increased 11%.

North American Residential net sales were $1,351 million, a 13%
increase over 2015, driven by a 13% increase in sales volumes. A 1%
improvement in average unit price was offset by 2% negative foreign
exchange. Excluding the unfavorable impact of foreign exchange, net
sales would have increased by 15%.

Total company gross profit increased 17% to $410 million in 2016, from
$351 million in 2015. Gross profit margin increased 210 basis points to
20.8% due to increases in average unit price, lower commodities costs
and favorable fixed cost leverage due to higher sales volumes.

Selling, general and administrative expenses (SG&A) increased 7% to $260
million in 2016 and SG&A as a percentage of net sales was 13.2%, a 20
basis point increase versus the prior year. The increase in SG&A was
largely attributable to an $8.3 million increase in personnel costs due
to a combination of wage inflation and investments in additional
personnel, a $3.9 million increase in professional fees, primarily
related to IT and digital initiatives, and a $1.2 million increase in
marketing costs. Foreign exchange benefited SG&A expense by $5 million.

Net income (loss) attributable to Masonite increased $145.7 million to
$98.6 million in the 2016 fiscal year, from $(47) million in the
comparable 2015 period. Included in net income is the previously
disclosed $6.5 million income tax benefit in 2016 as a result of
adopting new accounting standards related to share based compensation
transactions.

Adjusted EBITDA increased 24% to $253 million in 2016, from $204 million
in the comparable 2015 period.

Diluted earnings per share were $3.19 in the 2016 fiscal year compared
to $(1.53) in the comparable 2015 period. Diluted adjusted earnings per
share increased $1.54 to $3.03 in the 2016 fiscal year compared to $1.49
in the comparable 2015 period.

During the 2016 fiscal year Masonite repurchased 1.7 million of its
common shares at an average price of $65.47, or approximately $109
million.

Share Repurchase Authorization

Masonite also announced today that its Board of Directors approved a new
share repurchase program pursuant to which the Company intends to
repurchase up to $200 million of its outstanding common shares. This is
in addition to the existing share repurchase authorization approved in
February 2016, under which approximately $41 million remained available
for repurchases as of January 1, 2017. The Company expects to largely
complete repurchases under both repurchase programs over the next two
years, although neither program has a fixed expiration date. Assuming
full utilization of the approximately $241 million aggregate
authorization under both repurchase programs through repurchases made at
$68.55, the Company’s February 21, 2017 closing share price, an
aggregate of approximately 3.5 million shares, or 12% of total shares
outstanding as of January 1, 2017, could be repurchased.

Any repurchases under the new and existing program will be made in the
open market, in privately negotiated transactions or otherwise, subject
to market conditions, applicable legal requirements, and other relevant
factors. The share repurchase programs do not obligate the Company to
acquire any particular amount of common shares, and it may be suspended
or terminated at any time at the Company’s discretion. The timing of the
repurchases and the actual amount repurchased will be determined by the
Company based on its evaluation of a variety of factors, including the
market price of the Company’s common shares, general market and economic
conditions, and other factors. Repurchases under the share repurchase
program are permitted to be made under one or more Rule 10b5-1 plans,
which would permit shares to be repurchased when the Company might
otherwise be precluded from doing so under applicable insider trading
laws.

“We are in a stronger financial position than we have been for many
years and remain optimistic about the near term outlook for our
business,” said Russ Tiejema, executive vice president and CFO. “This
additional authorization reflects the ongoing strength of Masonite’s
balance sheet and operating cash flow and our commitment to
simultaneously return value to our shareholders while investing to grow
our business."

2017 Outlook

Masonite’s 2017 annual outlook assumes mid-single digit U.S. housing
completions, low to mid-single digit growth in the U.S. repair,
renovation and remodel market, continued strength in our U.K. Door-Stop
International business and modest growth in the North American
Architectural market. We anticipate both the U.K. and Canadian housing
markets to be relatively flat. The Company expects full-year 2017 net
sales growth in the range of seven to nine percent. Excluding
anticipated impacts of foreign exchange the Company expects net sales
growth of eight to ten percent.

The Company expects 2017 Adjusted EBITDA to be in the range of $285
million to $305 million and diluted adjusted earnings per share of $4.10
to $4.60.

We are not providing a quantitative reconciliation of our Adjusted
EBITDA outlook to the corresponding GAAP information because the GAAP
measures that we exclude from our Adjusted EBITDA outlook are difficult
to predict and are primarily dependent on future uncertainties. Items
with future uncertainties include restructuring costs, asset
impairments, share based compensation expense and gains/losses on sales
of subsidiaries and PP&E.

Masonite Earnings Conference Call

The Company will hold a live conference call and webcast on February 23,
2017. The live audio webcast will begin at 9:00 a.m. ET and can be
accessed, together with the presentation, on the Masonite website www.masonite.com.
The webcast can be directly accessed at: Q4'16
Earnings Webcast.

Telephone access to the live call will be available at 877-407-8289 (in
the U.S.) or by dialing 201-689-8341 (outside U.S.).

A telephone replay will be available approximately one hour following
completion of the call through March 9, 2017. To access the replay,
please dial 877-660-6853 (in the U.S.) or 201-612-7415 (outside U.S.).
Enter Conference ID #13653876.

About Masonite

Masonite International Corporation is a leading global designer and
manufacturer of interior and exterior doors for the residential new
construction; the residential repair, renovation and remodeling; and the
non-residential building construction markets. Since 1925, Masonite has
provided its customers with innovative products and superior service at
compelling values. Masonite currently serves more than 7,000 customers
in 65 countries. Additional information about Masonite can be found at www.masonite.com.

Forward-looking Statements

This press release contains forward-looking information and other
forward-looking statements within the meaning of applicable Canadian
and/or U.S. securities laws, including our discussion of our 2017
outlook, housing and other markets, and the effects of our strategic
initiatives. When used in this press release, such forward-looking
statements may be identified by the use of such words as “may,” “might,”
“could,” “will,” “would,” “should,” “expect,” “believes,” “outlook,”
“predict,” “forecast,” “objective,” “remain,” “anticipate,” “estimate,”
“potential,” “continue,” “plan,” “project,” “targeting,” or the negative
of these terms or other similar terminology.

Forward-looking statements involve significant known and unknown
risks, uncertainties and other factors that may cause the actual
results, performance or achievements of Masonite, or industry results,
to be materially different from any future plans, goals, targets,
objectives, results, performance or achievements expressed or implied by
such forward-looking statements. As a result, such forward-looking
statements should not be read as guarantees of future performance or
results, should not be unduly relied upon, and will not necessarily be
accurate indications of whether or not such results will be achieved.
Factors that could cause actual results to differ materially from the
results discussed in the forward-looking statements include, but are not
limited to, our ability to successfully implement our business strategy;
general economic, market and business conditions; levels of residential
new construction; residential repair, renovation and remodeling; and
non-residential building construction activity; the United Kingdom
passage of legislation authorizing its exit from the European Union;
competition; our ability to manage our operations including integrating
our recent acquisitions and companies or assets we acquire in the
future; our ability to generate sufficient cash flows to fund our
capital expenditure requirements, to meet our pension obligations, and
to meet our debt service obligations, including our obligations under
our senior notes and our ABL Facility; labor relations (i.e.,
disruptions, strikes or work stoppages), labor costs and availability of
labor; increases in the costs of raw materials or any shortage in
supplies; our ability to keep pace with technological developments; the
actions taken by, and the continued success of, certain key customers;
our ability to maintain relationships with certain customers; the
ability to generate the benefits of our restructuring activities;
retention of key management personnel; environmental and other
government regulations; and limitations on operating our business as a
result of covenant restrictions under our existing and future
indebtedness, including our senior notes and our ABL Facility.

Non-GAAP Financial Measures and Related
Information

Our management reviews net sales and Adjusted EBITDA (as defined below)
to evaluate segment performance and allocate resources. Net assets are
not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP
financial measure which does not have a standardized meaning under GAAP
and is unlikely to be comparable to similar measures used by other
companies. Adjusted EBITDA should not be considered as an alternative to
either net income or operating cash flows determined in accordance with
GAAP. Additionally, Adjusted EBITDA is not intended to be a measure of
free cash flow for management's discretionary use, as it does not
include certain cash requirements such as interest payments, tax
payments and debt service requirements. Adjusted EBITDA is defined as
net income (loss) attributable to Masonite adjusted to exclude the
following items: depreciation; amortization; share based compensation
expense; loss (gain) on disposal of property, plant and equipment;
registration and listing fees; restructuring costs; asset impairment;
loss (gain) on disposal of subsidiaries; interest expense (income), net;
loss on extinguishment of debt; other expense (income), net; income tax
expense (benefit); loss (income) from discontinued operations, net of
tax; and net income (loss) attributable to non-controlling interest.
This definition of Adjusted EBITDA differs from the definitions of
EBITDA contained in the indenture governing the 2023 Notes and the
credit agreement governing the ABL Facility. Adjusted EBITDA, as
calculated under our ABL Facility or senior notes would also include,
among other things, additional add-backs for amounts related to: cost
savings projected by us in good faith to be realized as a result of
actions taken or expected to be taken prior to or during the relevant
period; fees and expenses in connection with certain plant closures and
layoffs; and the amount of any restructuring charges, integration costs
or other business optimization expenses or reserve deducted in the
relevant period in computing consolidated net income, including any
one-time costs incurred in connection with acquisitions. The tables
below sets forth a reconciliation of Adjusted EBITDA to net income
(loss) attributable to Masonite for the periods indicated. We are not
providing a quantitative reconciliation of our Adjusted EBITDA outlook
to the corresponding GAAP information because the GAAP measures that we
exclude from our Adjusted EBITDA outlook are difficult to predict and
are primarily dependent on future uncertainties.

Adjusted EPS is diluted earnings per common share attributable to
Masonite (EPS) less asset impairment charges, loss (gain) on disposal of
subsidiaries and loss on extinguishment of debt, net of related tax
expense (benefit). Management uses this measure to evaluate the overall
performance of the Company and believes this measure provides investors
with helpful supplemental information regarding the underlying
performance of the Company from period to period. This measure may be
inconsistent with similar measures presented by other companies.

* See "Non-GAAP Financial Measures and Related Information" for
definition and reconciliation of non-GAAP measures.

MASONITE INTERNATIONAL CORPORATION

SALES RECONCILIATION AND ADJUSTED EBITDA BY REPORTABLE SEGMENT

(In millions of U.S. dollars)

(Unaudited)

North

American

Residential

Europe

Architectural

Corporate

Segment

Segment

Segment

and Other

Consolidated

% Change

Fourth quarter 2015 net sales

$

310.9

$

81.3

$

74.8

$

18.4

$

485.4

Volume*

27.6

(1.2

)

(9.5

)

(12.0

)

4.8

1.0

%

Average unit price

(0.6

)

2.8

5.3

—

7.5

1.5

%

Other

0.7

(1.2

)

(0.4

)

(0.4

)

(1.3

)

(0.3

)%

Foreign exchange

(1.9

)

(13.4

)

—

(0.1

)

(15.4

)

(3.2

)%

Fourth quarter 2016 net sales

$

336.7

$

68.3

$

70.2

$

5.9

$

481.0

(0.9

)%

Year over year growth, net sales

8.3

%

(16.0

)%

(6.1

)%

(67.9

)%

Fourth quarter 2015 Adjusted EBITDA

$

45.6

$

9.9

$

4.9

$

(3.6

)

$

56.8

Fourth quarter 2016 Adjusted EBITDA

$

49.9

$

7.9

$

5.8

$

(3.0

)

$

60.6

Year over year growth, Adjusted EBITDA

9.4

%

(20.2

)%

18.4

%

nm

6.7

%

North

American

Residential

Europe

Architectural

Corporate

Segment

Segment

Segment

and Other

Consolidated

% Change

Year to date 2015 net sales

$

1,193.2

$

311.8

$

291.8

$

75.1

$

1,872.0

Volume*

160.4

(4.8

)

(5.4

)

(50.9

)

99.2

5.3%

Average unit price

14.2

24.2

10.4

—

48.8

2.6%

Other

1.3

(2.0

)

2.4

(0.3

)

1.4

0.1%

Foreign exchange

(17.8

)

(28.0

)

(1.3

)

(0.3

)

(47.4

)

(2.5)%

Year to date 2016 net sales

$

1,351.3

$

301.2

$

297.9

$

23.6

$

1,974.0

5.4%

Year over year growth, net sales

13.3

%

(3.4

)%

2.1

%

(68.6

)%

Year to date 2015 Adjusted EBITDA

$

165.6

$

30.5

$

23.3

$

(15.1

)

$

204.2

Year to date 2016 Adjusted EBITDA

$

212.6

$

38.8

$

25.2

$

(24.1

)

$

252.5

Year over year growth, Adjusted EBITDA

28.4

%

27.2

%

8.2

%

nm

23.7

%

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share and per share amounts)

(Unaudited)

Three Months Ended

Year Ended

January 1,

January 3,

January 1,

January 3,

2017

2016

2017

2016

Net sales

$

481,027

$

485,422

$

1,973,964

$

1,871,965

Cost of goods sold

384,533

390,424

1,564,319

1,521,115

Gross profit

96,494

94,998

409,645

350,850

Gross profit as a % of net sales

20.1%

19.6%

20.8%

18.7%

Selling, general and administration expenses

63,488

67,576

260,364

244,145

Selling, general and administration expenses as a % of net sales

13.2%

13.9%

13.2%

13.0%

Restructuring costs

1,314

1,195

1,445

5,678

Asset impairment

1,511

—

1,511

9,439

Loss (gain) on disposal of subsidiaries

—

30,263

(6,575)

59,984

Operating income (loss)

30,181

(4,036)

152,900

31,604

Interest expense (income), net

7,028

7,165

28,178

32,884

Loss on extinguishment of debt

—

—

—

28,046

Other expense (income), net

(745)

1,782

(1,959)

(1,757)

Income (loss) from continuing operations before income tax
expense (benefit)

23,898

(12,983)

126,681

(27,569)

Income tax expense (benefit)

6,196

(1,595)

21,787

14,172

Income (loss) from continuing operations

17,702

(11,388)

104,894

(41,741)

Income (loss) from discontinued operations, net of tax

(144)

(247)

(752)

(908)

Net income (loss)

17,558

(11,635)

104,142

(42,649)

Less: net income (loss) attributable to non-controlling interest

2,128

1,583

5,520

4,462

Net income (loss) attributable to Masonite

$

15,430

$

(13,218)

$

98,622

$

(47,111)

Earnings (loss) per common share attributable to Masonite:

Basic

$

0.51

$

(0.43)

$

3.25

$

(1.56)

Diluted

$

0.50

$

(0.43)

$

3.17

$

(1.56)

Earnings (loss) per common share from continuing operations
attributable to Masonite:

Basic

$

0.51

$

(0.43)

$

3.27

$

(1.53)

Diluted

$

0.49

$

(0.43)

$

3.19

$

(1.53)

Shares used in computing basic earnings per share

30,280,311

30,402,479

30,359,193

30,266,747

Shares used in computing diluted earnings per share

31,010,490

30,402,479

31,101,076

30,266,747

MASONITE INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share amounts)

(Unaudited)

January 1,

January 3,

ASSETS

2017

2016

Current assets:

Cash and cash equivalents

$

71,714

$

89,187

Restricted cash

12,196

12,645

Accounts receivable, net

242,197

224,976

Inventories, net

225,940

208,393

Prepaid expenses

24,291

21,983

Income taxes receivable

2,399

1,762

Total current assets

578,737

558,946

Property, plant and equipment, net

542,088

534,234

Investment in equity investees

9,302

18,811

Goodwill

129,286

128,170

Intangible assets, net

190,154

225,932

Long-term deferred income taxes

9,478

16,899

Other assets, net

16,816

16,157

Total assets

$

1,475,861

$

1,499,149

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

96,178

$

96,480

Accrued expenses

133,799

136,029

Income taxes payable

1,201

9

Total current liabilities

231,178

232,518

Long-term debt

470,745

468,856

Long-term deferred income taxes

70,423

98,682

Other liabilities

43,739

43,527

Total liabilities

816,085

843,583

Commitments and Contingencies

Equity:

Share capital: unlimited shares authorized, no par value, 29,774,784
and 30,427,865 shares issued and outstanding as of January 1, 2017,
and January 3, 2016, respectively

650,007

663,600

Additional paid-in capital

234,926

231,363

Accumulated deficit

(89,063

)

(144,628

)

Accumulated other comprehensive income (loss)

(148,986

)

(107,948

)

Total equity attributable to Masonite

646,884

642,387

Equity attributable to non-controlling interests

12,892

13,179

Total equity

659,776

655,566

Total liabilities and equity

$

1,475,861

$

1,499,149

MASONITE INTERNATIONAL CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES

(In thousands of U.S. dollars, except share and per share amounts)

(Unaudited)

Three Months Ended

Year Ended

January 1,

January 3,

January 1,

January 3,

(In thousands)

2017

2016

2017

2016

Net income (loss) attributable to Masonite

$

15,430

$

(13,218

)

$

98,622

$

(47,111

)

Add: Asset impairment

1,511

—

1,511

9,439

Add: Loss (gain) on disposal of subsidiaries

—

30,263

(6,575

)

59,984

Add: Loss on extinguishment of debt

—

—

—

28,046

Tax impact of adjustments

—

—

737

(3,248

)

Adjusted net income (loss) attributable to Masonite

$

16,941

$

17,045

$

94,295

$

47,110

Diluted earnings (loss) per common share attributable to Masonite
("EPS")

The weighted average number of shares outstanding utilized for the
diluted EPS and diluted Adjusted EPS calculation contemplates the
exercise of all currently outstanding SARs and warrants and the
conversion of all RSUs. The dilutive effect of such equity awards is
calculated based on the weighted average share price for each fiscal
period using the treasury stock method. For any periods presented which
result in a net loss, no potential common shares relating to our equity
awards were included in the computation of diluted loss per share, as
their effect would have been anti-dilutive given our net loss position
for those periods.